Income Tax Act, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Leviability - Non-specification of charge -

Penalty under section 271(1)(c) was levied. Assessee contended that the penalty notice did not provide any particular limb of section 271(1)(c) for imposing the penalty. It further contended that there was no satisfaction given by AO in assessment order as to whether the imposition of penalty was on the basis of filing of inaccurate particulars of income or concealment of income. Thus, inception of the penalty order was bad in law and hence, the penalty would not be sustainable. Held: It was pertinent to note that there was no satisfaction given by AO in assessment order as to whether the imposition of penalty was on the basis of filing of inaccurate particulars of income or concealment of income. Moreover, as inappropriate words in penalty notice were not struck off and the notice did not specify as to under which limb of provisions, the penalty under section 271(1)(c) was initiated, the said notice itself was bad in law and hence, the penalty levied under section 271(1)(c) would not be sustainable.

Relied:Pr. CIT & Ors. v. Sahara India Life Insurance Company Ltd. (ITA No.475/2019 vide Order dated 02-8-2019): 2019 TaxPub(DT) 6933 (Del-HC), CIT v. SSA'S Emerald Meadows (2016) 73 Taxman.com 241(Kar): 2018 TaxPub(DT) 0953 (Karn-HC)

REFERRED : CIT & Anr. v. SSA'S Emerald Meadows (2016) 73 Taxman.com 248 (SC): 2016 TaxPub(DT) 4242 (SC)

FAVOUR : In assessee's favour.

A.Y. :

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